ALK (Outperform) – Raising PT to $84 from $80. We believe Alaska Air Group will see significant margin improvement in 2019 as they slow growth and execute revenue and cost initiatives. Alaska is targeting 13% to 15% pre-tax margins (vs ~8% in 2018) as they capitalize on the Virgin America merger. We believe there is further upside to our ~4% 2019 RASM assumption if market maturation and competitive pressures continue to improve.
Cowen_ALK.pdfMCD (Outperform) – Expect a positive reaction to news reports that MCD will now complete the US remodel by 2022 vs the prior 2020, very much in line with our recent work that they could slow the roll out to reduce pressure on franchisees and the 2019 comp given less disruption. Our work suggests that the slowing of the remodel rollout will increase the 2019 comp benefit from 20bps to 100bps but reduce the 2020 benefit from 220bps to 20bps and expect investors to view the tradeoff positively. Our 3% US comp estimates in 2019 and 2020 remain intact, $200 PT.
#
텔레그램에서도 투자정보 제공해요.
t.me/globaldesk 접속 혹은 @globaldesk 검색 하세요.
